Gold Price News: Gold rises above USD 2,900 - interest rate speculation and trade war drive the price

On March 11, 2025, the price of gold rose by 0.4% to USD 2,901.13 per ounce. The key trigger was a significantly weaker US dollar, which depreciated considerably due to growing expectations of an upcoming interest rate cut by the US Federal Reserve. At the same time, yields on 10-year US government bonds fell, further reducing the relative opportunity costs for gold investments and increasing investors' preference for gold as an investment.

The markets specifically expect the US Federal Reserve to start cutting interest rates by June 2025 at the latest in order to support the weakening economy. This expectation was reinforced on March 11 in particular by the latest economic data and statements from Fed circles, which indicated that the current tight monetary policy may no longer be sustainable.

On March 11, gold trading on the COMEX in New York recorded robust trading volumes. The high liquidity reflected the strong demand from institutional and private investors, who increasingly invested in safe havens. At the same time, significant inflows into physically backed gold funds (ETFs) were reported and physical gold holdings in COMEX vaults rose noticeably - a clear signal of sustained market confidence.

March 11, 2025 continued to be overshadowed by the escalating trade conflict between the US on the one hand and China and Canada on the other. Following new punitive tariffs imposed by the US, China and Canada immediately responded with their own retaliatory measures, causing massive uncertainty on the global markets. These geopolitical tensions led to increased demand for gold as a crisis protection investment.

In addition, US President Donald Trump signed an executive order on March 11 to establish a “Strategic Bitcoin Reserve” and a separate “Digital Asset Stockpile”. The US currently holds around 200,000 bitcoins worth around USD 17.5 billion. This measure was interpreted by analysts as an attempt to strategically secure digital assets without disposing of US dollar holdings.

From a technical perspective, the gold price was stable at around USD 2900 on March 11. Critical resistance is currently at USD 2905; a sustained break through this level could lead to further strong buying impulses. On the other hand, support at USD 2890 remains important for further price development in the short term.

Market sentiment remains cautiously optimistic. The focus is now on the US inflation figures announced for March 12, which could provide further indications of the Fed's future monetary policy. A low inflation figure would probably continue to support the gold price, while surprisingly high inflation figures could weigh on the market in the short term.